Public Act 103-1060
HB0793 EnrolledLRB103 04385 RPS 49391 b HB0793 Enrolled LRB103 04385 RPS 49391 b
HB0793 Enrolled LRB103 04385 RPS 49391 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Reference to Act. This Act may be referred to as
the Dignity in Pay Act.
Section 3. Declaration of policy and intent.
(a) Section 14(c) of the federal Fair Labor Standards Act
of 1938 provides for the employment of persons with
disabilities at wage rates below the statutory federal minimum
wage. Among those who have worked for subminimum wages in
Illinois are people with intellectual, developmental,
physical, and sensory disabilities, including those who are
blind or deaf or are diagnosed with cerebral palsy, spina
bifida, or Down syndrome. Section 14(c) authorizations result
in a national average wage of approximately $3 per hour for
workers with disabilities who have engaged in work activities
under a 14(c) wage certificate.
Data released in October 2022 from the United States
Department of Labor shows that Illinois ranks second in the
nation in the number of 14(c) certificates issued or pending,
with several thousand Illinois residents with disabilities
engaged in activities compensated below minimum wage. These
activities most often occur in congregate work centers (also
HB0793 Enrolled LRB103 04385 RPS 49391 b
known as facility-based employment or sheltered workshops),
some of which may have the effect of isolating people with
disabilities from the greater community.
The Illinois Employment First Act stipulates that
"competitive and integrated employment shall be considered the
first option when serving persons with disabilities of working
age." Across the United States, 18 states eliminated, phased
out, or modified the authority of employers to pay subminimum
wages to people with disabilities.
Ensuring that Illinois maximizes opportunities for persons
with disabilities to secure gainful employment is a critical
element to achieving the requirements of the Illinois
Employment First Act. The Workforce Innovation and Opportunity
Act (Public Law 113-128) and Section 7 of the Rehabilitation
Act of 1973 (29 U.S.C. 705) define competitive integrated
employment as "work that is performed on a full-time or
part-time basis for which an individual is: compensated at a
rate that shall be not less than the rate specified in the
applicable State or local minimum wage law; and is not less
than the customary rate paid by the employer for the same or
similar work performed by other employees who are not
individuals with disabilities, and who are similarly situated
in similar occupations by the same employer and who have
similar training, experience, and skills; or in the case of an
individual who is self-employed, yields an income that is
comparable to the income received by other individuals who are
not individuals with disabilities, and who are self-employed
in similar occupations or on similar tasks and who have
similar training, experience, and skills; and is eligible for
the level of benefits provided to other employees".
Paying workers with disabilities subminimum wages
perpetuates harmful, unfair, and inaccurate stereotypes about
the potential and worth of people with disabilities, affects
their capacity to earn wages equivalent to those of their
peers without disabilities, and diminishes the expectations
about and perceived value of their contributions to the
workforce and society.
Eliminating subminimum wage employment for people with
disabilities, coupled with the implementation of service
enhancements and policy changes, is crucial for advancing
economic justice and accelerating dignity and self-sufficiency
for all people. It ensures that those currently employed in
subminimum wage jobs can transition to competitive integrated
employment, supported employment, or integrated community
activities aligned with their individual aspirations.
On October 4, 2021, the Governor signed Executive Order 26
(2021), which requires all contracts through the Illinois
State Use Program to provide payment to workers at no less than
the applicable local, if higher, or Illinois minimum wage for
all employees performing work on the contract.
(b) Additional service enhancements, rate adjustments,
investments, and policy changes are needed to address systemic
barriers to assist persons with disabilities to access
increased employment opportunities and earn at or above the
Illinois minimum wage.
(c) Collaborative partnerships between State agencies and
key stakeholder organizations, including, but not limited to,
those noted in this amendatory Act of the 103rd General
Assembly, shall result in a complete phase out of Illinois
Section 14(c) certificates on December 31, 2029.
Section 5. The Department of Human Services Act is amended
by adding Sections 1-90 and 1-95 as follows:
(20 ILCS 1305/1-90 new)
Sec. 1-90. Program rates. The Department of Healthcare and
Family Services, in partnership with the Department of Human
Services, shall file an amendment to the Home and
Community-Based Services Waiver Program for Adults with
Developmental Disabilities authorized under Section 1915(c) of
the Social Security Act to increase the rates for the
following waiver services: Supported Employment - Small Group
Supports. The amendment shall be filed by January 1, 2025.
Implementation of any rate increase to the Supported
Employment - Small Group Supports service is subject to
federal approval of the amendment filed as required in this
Section.
(20 ILCS 1305/1-95 new)
Sec. 1-95. Transition Program Grants.
(a) The Department of Human Services shall establish a
Section 14(c) transition program to award transition grants to
eligible community agencies with active or pending Section
14(c) certificates to aid in the transition away from
subminimum wages for workers with disabilities. The goal of
Section 14(c) transition program grants is to develop new
opportunities and programs and grow capacity to respond to the
needs of individuals with disabilities in their geographic
area, including, but not limited to, supported employment,
customized employment, self-employment, entrepreneurship, and
diverse day programs that support meaningful days, choice, and
community integration.
(b) Eligibility for Section 14(c) transition program
grants shall be contingent upon community agencies submitting
a transition plan. The Department shall provide example plans
that community agencies may adapt. By January 1, 2025, the
transition program grant funds shall be awarded in compliance
with the Grant Accountability and Transparency Act.
(c) Grants shall be made by the Department to eligible
holders of Section 14(c) certificates, consistent with the
Grant Accountability and Transparency Act, to assist workers
with disabilities who are working for subminimum wages to
transition to competitive integrated employment and to support
eligible Section 14(c) certificate holders. Grant funding
shall be used to:
(1) provide competitive integrated employment;
(2) assist individuals with disabilities who were
employed at subminimum wages to find and retain
competitive integrated employment; or
(3) provide integrated community participation and
wraparound services for individuals with disabilities who
were employed at subminimum wages.
(d) Beginning on January 1, 2026, the Department of Human
Services shall provide an annual status report to the Governor
and the General Assembly, incorporating data from each grant
recipient, to demonstrate progress toward identified
benchmarks.
Section 7. The Employment and Economic Opportunity for
Persons with Disabilities Task Force Act is amended by adding
Section 16 as follows:
(20 ILCS 4095/16 new)
Sec. 16. Multi-year plan toward elimination of Section
14(c) certificates. By no later than July 1, 2025, the
Employment and Economic Opportunity for Persons with
Disabilities Task Force, with the Illinois Council on
Developmental Disabilities and an academic partner with
relevant subject matter expertise, shall create a multi-year
plan of recommended actions, outcomes, and benchmarks in
accordance with paragraphs (1) through (3) to help the State
successfully eliminate on and after December 31, 2029 the use
of certificates authorized under Section 14(c) of the federal
Fair Labor Standards Act of 1938.
(1) The multi-year plan shall include, but not be
limited to, all of the following:
(A) Identification, gathering, and analytics of
data to inform the work of the Task Force, including,
but not limited to:
(i) the total number of entities utilizing
Section 14(c) certificates;
(ii) the total number of persons with
disabilities who are paid subminimum wages and the
total number of persons with disabilities who are
paid at least the applicable minimum wages;
(iii) the total number of persons with
disabilities working in facility-based employment
paid at or above minimum wage.
(B) Recommended actions, including additional
statutory, regulatory, or policy measures, including
State-supported activities to assist providers in
employing people with disabilities.
(C) Recommended measurable outcomes for each year
of the plan.
(D) Recommended benchmarks for each year of the
plan.
(2) In developing the multi-year plan, the Task Force
shall consider:
(A) The total available approximate number of
people with disabilities paid subminimum wages who
want to transition to competitive integrated
employment with supports.
(B) The total available approximate number of
people with disabilities who do not wish to pursue
competitive integrated employment and who would
benefit from alternative meaningful day opportunities.
(C) Existing State employment programs designed to
support workers with disabilities.
(D) An evaluation of capacity limits in providers'
contracts with the Department of Human Services'
Division of Rehabilitation Services and Division of
Developmental Disabilities.
(E) The personal choice of persons with
disabilities regarding employment goals and planning
in person-centered planning processes.
(F) The use of existing and emerging technologies
that could assist persons with disabilities in
achieving employment goals.
(G) The impact of access to reliable
transportation on achieving employment goals and
ongoing employment.
(H) An analysis that shall include data on:
(i) the activities of youth with disabilities
within one year of exiting high school;
(ii) the count of schools holding Student
Transition Employment Program and Pre-Employment
Transition Services contracts with the Division of
Rehabilitation Services that includes the count of
students with ongoing cases who transition to
adult services;
(iii) the number of students 14 1/2 through 22
years of age with individualized education plans
indicating a need for home and community-based
adult services.
(I) The potential changes to State law,
regulations, or policies to protect means-tested
benefits for persons with disabilities as they pursue
employment-related goals.
(J) Dissemination of information regarding
employment supports and benefits to individuals with
disabilities, consumers of public services, employers,
service providers, and State and local agency staff.
Information shall include the Ticket to Work program,
Work Incentives Planning and Assistance Programs,
Illinois ABLE, and Health Benefits for Workers with
Disabilities.
(K) The education and training needs of staff
working in community-based provider agencies toward
advancing competitive, integrated work options for
persons with disabilities, in areas including, but not
limited to:
(i) employment options;
(ii) non-employment options;
(iii) home and community-based services and
supports;
(iv) self-advocacy;
(v) benefits planning;
(vi) asset building;
(vii) assistive technology;
(viii) certification programs; and
(ix) mental health services and supports.
(L) Agreements between State agencies and
community-based providers that promote flexibility and
allow for expansion.
(M) Ongoing review of rates and reimbursements
that support various employment programs for persons
with disabilities, including competitive, integrated
employment, customized employment, and supported
employment.
(N) The need to further engage the private
business community to hire persons with disabilities
through incentives that may include specialized
educational opportunities, distribution of literature
at points of interaction with government licensing
agencies, and tax incentives to hiring persons with
disabilities.
(O) The availability and need for adequate
benefits planning services for workers with
disabilities.
(P) The availability and need for meaningful day
services for individuals with disabilities who prefer
not to work.
(Q) Enhanced service and support needs of aging
adults with developmental disabilities who have been
engaged in subminimum wage work, including, but not
limited to, activities of daily living, behavioral
supports, and medical supports, including
administration of medications while participating in
employment supports and community day services through
the Department of Human Services.
(3) In developing the multi-year plan, the Task Force
shall consult with employment service providers, people
with disabilities, disability trade associations, and
disability advocacy organizations.
(4) The Task Force shall submit the multi-year plan to
the Governor and the General Assembly by no later than
July 1, 2025. Annual reports on implementation shall be
required by no later than January 1 of each subsequent
year through January 1, 2030.
(5) The Task Force shall provide annual updates to the
Governor and the General Assembly through January 1, 2035
on the employment of persons with disabilities in
Illinois.
(6) The Governor shall appoint at least 2 additional
members to the Task Force who represent organizations that
are current Section 14(c) certificate holders. The
Director of Labor, or the Director's designee, shall serve
on the Task Force in a non-voting, advisory capacity until
July 1, 2025.
Section 20. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Section 2 as follows:
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2029)
Sec. 2. Definitions.
(A) For the purpose of this Act, the following terms shall
have the following definitions:
(1) "Minority person" shall mean a person who is a
citizen or lawful permanent resident of the United States
and who is any of the following:
(a) American Indian or Alaska Native (a person
having origins in any of the original peoples of North
and South America, including Central America, and who
maintains tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or
the Indian subcontinent, including, but not limited
to, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand, and
Vietnam).
(c) Black or African American (a person having
origins in any of the black racial groups of Africa).
(d) Hispanic or Latino (a person of Cuban,
Mexican, Puerto Rican, South or Central American, or
other Spanish culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples
of Hawaii, Guam, Samoa, or other Pacific Islands).
(2) "Woman" shall mean a person who is a citizen or
lawful permanent resident of the United States and who is
of the female gender.
(2.05) "Person with a disability" means a person who
is a citizen or lawful resident of the United States and is
a person qualifying as a person with a disability under
subdivision (2.1) of this subsection (A).
(2.1) "Person with a disability" means a person with a
severe physical or mental disability that:
(a) results from:
amputation,
arthritis,
autism,
blindness,
burn injury,
cancer,
cerebral palsy,
Crohn's disease,
cystic fibrosis,
deafness,
head injury,
heart disease,
hemiplegia,
hemophilia,
respiratory or pulmonary dysfunction,
an intellectual disability,
mental illness,
multiple sclerosis,
muscular dystrophy,
musculoskeletal disorders,
neurological disorders, including stroke and
epilepsy,
paraplegia,
quadriplegia and other spinal cord conditions,
sickle cell anemia,
ulcerative colitis,
specific learning disabilities, or
end stage renal failure disease; and
(b) substantially limits one or more of the
person's major life activities.
Another disability or combination of disabilities may
also be considered as a severe disability for the purposes
of item (a) of this subdivision (2.1) if it is determined
by an evaluation of rehabilitation potential to cause a
comparable degree of substantial functional limitation
similar to the specific list of disabilities listed in
item (a) of this subdivision (2.1).
(3) "Minority-owned business" means a business which
is at least 51% owned by one or more minority persons, or
in the case of a corporation, at least 51% of the stock in
which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
(4) "Women-owned business" means a business which is
at least 51% owned by one or more women, or, in the case of
a corporation, at least 51% of the stock in which is owned
by one or more women; and the management and daily
business operations of which are controlled by one or more
of the women who own it.
(4.1) "Business owned by a person with a disability"
means a business that is at least 51% owned by one or more
persons with a disability and the management and daily
business operations of which are controlled by one or more
of the persons with disabilities who own it. A
not-for-profit agency for persons with disabilities that
is exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "business owned
by a person with a disability".
(4.2) "Council" means the Business Enterprise Council
for Minorities, Women, and Persons with Disabilities
created under Section 5 of this Act.
(4.3) "Commission" means, unless the context clearly
indicates otherwise, the Commission on Equity and
Inclusion created under the Commission on Equity and
Inclusion Act.
(4.4) "Certified vendor" means a minority-owned
business, women-owned business, or business owned by a
person with a disability that is certified by the Business
Enterprise Program.
(4.5) "Subcontractor" means a person or entity that
enters into a contractual agreement with a prime vendor to
provide, on behalf of the prime vendor, goods, services,
real property, or remuneration or other monetary
consideration that is the subject of the primary State
contract. "Subcontractor" includes a sublessee under a
State contract.
(4.6) "Prime vendor" means any person or entity having
a contract that is subject to this Act with a State agency
or public institution of higher education.
(5) "State contracts" means all contracts entered into
by the State, any agency or department thereof, or any
public institution of higher education, including
community college districts, regardless of the source of
the funds with which the contracts are paid, which are not
subject to federal reimbursement. "State contracts" does
not include contracts awarded by a retirement system,
pension fund, or investment board subject to Section
1-109.1 of the Illinois Pension Code. This definition
shall control over any existing definition under this Act
or applicable administrative rule.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education for the repair,
remodeling, renovation or construction of a building or
structure, or for the construction or maintenance of a
highway defined in Article 2 of the Illinois Highway Code.
(6) "State agencies" shall mean all departments,
officers, boards, commissions, institutions and bodies
politic and corporate of the State, but does not include
the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the
Board of Trustees of Chicago State University, the Board
of Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of
Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, municipalities or
other local governmental units, or other State
constitutional officers.
(7) "Public institutions of higher education" means
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois
University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges, and community colleges now or
hereafter established or authorized by the General
Assembly.
(8) "Certification" means a determination made by the
Council or by one delegated authority from the Council to
make certifications, or by a State agency with statutory
authority to make such a certification, that a business
entity is a business owned by a minority, woman, or person
with a disability for whatever purpose. A business owned
and controlled by women shall be certified as a
"woman-owned business". A business owned and controlled by
women who are also minorities shall be certified as both a
"women-owned business" and a "minority-owned business".
(9) "Control" means the exclusive or ultimate and sole
control of the business including, but not limited to,
capital investment and all other financial matters,
property, acquisitions, contract negotiations, legal
matters, officer-director-employee selection and
comprehensive hiring, operating responsibilities,
cost-control matters, income and dividend matters,
financial transactions and rights of other shareholders or
joint partners. Control shall be real, substantial and
continuing, not pro forma. Control shall include the power
to direct or cause the direction of the management and
policies of the business and to make the day-to-day as
well as major decisions in matters of policy, management
and operations. Control shall be exemplified by possessing
the requisite knowledge and expertise to run the
particular business and control shall not include simple
majority or absentee ownership.
(10) "Business" means a business that has annual gross
sales of less than $150,000,000 as evidenced by the
federal income tax return of the business. A certified
vendor with gross sales in excess of this cap may apply to
the Council for certification for a particular contract if
the vendor can demonstrate that the contract would have
significant impact on businesses owned by minorities,
women, or persons with disabilities as suppliers or
subcontractors or in employment of minorities, women, or
persons with disabilities. Firms with gross sales in
excess of this cap that are granted certification by the
Council shall be granted certification for the life of the
contract, including available renewals.
(11) "Utilization plan" means an attachment that is
made to all bids or proposals and that demonstrates the
bidder's or offeror's efforts to meet the
contract-specific Business Enterprise Program goal. The
utilization plan shall indicate whether the prime vendor
intends to meet the Business Enterprise Program goal
through its own performance, if it is a certified vendor,
or through the use of subcontractors that are certified
vendors. The utilization plan shall demonstrate that the
Vendor has either: (1) met the entire contract goal or (2)
requested a full or partial waiver of the contract goal.
If the prime vendor intends to use a subcontractor that is
a certified vendor to fulfill the contract goal, a
participation agreement executed between the prime vendor
and the certified subcontractor must be included with the
utilization plan.
(12) "Business Enterprise Program" means the Business
Enterprise Program of the Commission on Equity and
Inclusion.
(13) "Good faith effort" means actions undertaken by a
vendor to achieve a contract specific Business Enterprise
Program goal that, by scope, intensity, and
appropriateness to the objective, can reasonably be
expected to fulfill the program's requirements.
(B) When a business is owned at least 51% by any
combination of minority persons, women, or persons with
disabilities, even though none of the 3 classes alone holds at
least a 51% interest, the ownership requirement for purposes
of this Act is considered to be met. The certification
category for the business is that of the class holding the
largest ownership interest in the business. If 2 or more
classes have equal ownership interests, the certification
category shall be determined by the business.
(Source: P.A. 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23;
103-570, eff. 1-1-24.)
Section 23. The Illinois Public Aid Code is amended by
changing Section 5-35 as follows:
(305 ILCS 5/5-35)
Sec. 5-35. Personal needs allowance.
(a) For a person who is a resident in a facility licensed
under the ID/DD Community Care Act, the Community-Integrated
Living Arrangements Licensure and Certification Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
MC/DD Act for whom payments are made under this Article
throughout a month and who is determined to be eligible for
medical assistance under this Article, the State shall pay an
amount in addition to the minimum monthly personal needs
allowance authorized under Section 1902(q) of Title XIX of the
Social Security Act (42 U.S.C. 1396a(q) 1396(q)) so that the
person's total monthly personal needs allowance from both
State and federal sources equals $60.
(b) Beginning January 1, 2025, for a person who is a
resident in a facility licensed under the Community-Integrated
Living Arrangements Licensure and Certification Act for whom
payments are made under this Article throughout a month and
who is determined to be eligible for medical assistance under
this Article, the State shall pay an amount in addition to the
minimum monthly personal needs allowance authorized under
Section 1902(q) of Title XIX of the Social Security Act so that
the person's total monthly personal needs allowance from both
State and federal sources equals $100.
(c) Beginning January 1, 2026, the personal needs
allowance described in subsection (b) shall increase annually
at the same rate as the Social Security cost-of-living
adjustment to take effect on January 1 of each year.
(Source: P.A. 100-23, eff. 7-6-17.)
Section 25. The Minimum Wage Law is amended by changing
Section 10 as follows:
(820 ILCS 105/10) (from Ch. 48, par. 1010)
Sec. 10. (a) The Director shall make and revise
administrative regulations, including definitions of terms, as
the Director he deems appropriate to carry out the purposes of
this Act, to prevent the circumvention or evasion thereof, and
to safeguard the minimum wage established by the Act.
Regulations governing employment of learners may be issued
only after notice and opportunity for public hearing, as
provided in subsection (c) of this Section.
(b) In order to prevent curtailment of opportunities for
employment, avoid undue hardship, and safeguard the minimum
wage rate under this Act, the Director may also issue
regulations providing for the employment of workers with
disabilities and learners at wages lower than the wage rate
applicable under this Act, under permits and for such periods
of time as specified therein; and providing for the employment
of learners at wages lower than the wage rate applicable under
this Act as follows:
(1) The Director may issue regulations for the
employment of workers with disabilities at wages lower
than the wage rate applicable under this Act, under
permits and for such periods of time as specified therein.
Such . However, such regulation shall not permit lower
wages for persons with disabilities on any basis that is
unrelated to such person's ability resulting from his
disability, and such regulation may be issued only after
notice and opportunity for public hearing as provided in
subsection (c) of this Section. All certificates issued
for the employment of workers with disabilities in
accordance with this Section in effect on December 31,
2029, shall expire on that date, and the Director may not
issue any such certificates after that date.
(2) The Director may issue regulations for the
employment of learners at wages lower than the wage rate
applicable under this Act. Regulations governing
employment of learners may be issued only after notice and
opportunity for public hearing, as provided in subsection
(c) of this Section.
(c) Prior to the adoption, amendment or repeal of any rule
or regulation by the Director under this Act, except
regulations which concern only the internal management of the
Department of Labor and do not affect any public right
provided by this Act, the Director shall give proper notice to
persons in any industry or occupation that may be affected by
the proposed rule or regulation, and hold a public hearing on
the his proposed action at which any such affected person, or
the person's his duly authorized representative, may attend
and testify or present other evidence for or against such
proposed rule or regulation. Rules and regulations adopted
under this Section shall be filed with the Secretary of State
in compliance with the Illinois Administrative Procedure Act
"An Act concerning administrative rules", as now or hereafter
amended.
(d) The commencement of proceedings by any person
aggrieved by an administrative regulation issued under this
Act does not, unless specifically ordered by the Court,
operate as a stay of that administrative regulation against
other persons. The Court shall not grant any stay of an
administrative regulation unless the person complaining of
such regulation files in the Court an undertaking with a
surety or sureties satisfactory to the Court for the payment
to the employees affected by the regulation, in the event such
regulation is affirmed, of the amount by which the
compensation such employees are entitled to receive under the
regulation exceeds the compensation they actually receive
while such stay is in effect.
(e) The Department may adopt emergency rules in accordance
with Section 5-45 of the Illinois Administrative Procedure Act
to implement the changes made by this amendatory Act of the
101st General Assembly.
(Source: P.A. 103-363, eff. 7-28-23.)
(820 ILCS 105/5 rep.)
Section 30. The Minimum Wage Law is amended by repealing
Section 5.